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Founding team and start-up competitive advantage
Abstract
Purpose
The purpose of this paper is to develop a framework to link founding team and start‐up competitive advantage in the context of the Taiwanese technology‐based ventures.
Design/methodology/approach
The paper analyzes 211 start‐ups of the technology‐based sector and verifies the relationship between entrepreneur resources, trust, founding team partners' commitments, and start‐up competitive advantage.
Findings
In technology‐based start‐ups, the competitive advantage of a start‐up is determined by the founding team partners' commitments and the resources an entrepreneur has.
Research limitations/implications
This study is retrospective which relies on technology‐based founding team members as the primary research subjects, some respondents may observe the performance of their start‐ups today and then make attributions about the past to explain that performance.
Practical implications
Utilizations of personal networks are important in the early stage of technology‐based start‐ups; through networking and using trust, an entrepreneur can gain the critical resources and competitive advantage required in the development of a business.
Originality/value
In technology‐based start‐ups, trust, not the resources an entrepreneur has, is an effective way by which entrepreneurs can win founding team partners' commitments.
... Cluster 2 has the weakest link strength among the five clusters. Wu et al. (2009) andBehl (2020) with respectively 42 and 17 link strengths. Cluster 3 consists of six articles with considerable similarity due to the strong influence of Colombo & Grilli (2005) and Baum & Silverman (2004), considering the references used in the study, which are generally used by other authors regardless of the research topic. ...
... The commitment of employees to the achievement of goals and objectives established by the organization. Wu et al. (2009) The quality of secondary and higher education and the knowledge and skills of graduates are not important indicators of the quality of education in companies in the Czech Republic and Slovakia. Although, at the same time, the quality of education factor influences competitiveness in the business environment and the decision to start a business in the Czech Republic (Kozubikova et al., 2019). ...
... According to literature, in technology-based companies, trust is an effective way in which entrepreneurs can conquer the commitments of the founding team's partners (Wu et al., 2009). Besides, employee satisfaction is also a factor that determines startups' competitiveness. ...
This research presents a systematized literature review to identify the main critical
success factors (CSFs) that influence startups’ competitiveness. Considering that aspects related to competitiveness should be the target of organizations, especially early-stage companies, this paper identifies a broad of factors regarding startups’ competitiveness. A total of 36 articles were selected in Scopus and Web of Science databases and an in-depth bibliometric analysis of the corpus was
performed using the VOSviewer software. 25 CSFs that influence startups’ competitiveness were identified and categorized into three fundamental points of view (FPVs), namely: organizational, human, and environmental. Organizational FPV covers factors that define the internal characteristics of startups. Human FPV, in turn, consists of characteristics of human capital, while the Environmental
FPV refers to external factors and the startup context. This work could help practitioners and policymakers by enlightening them about startups’ competitiveness and the elements involved therein, along with providing them with a robust conceptual framework.
Keywords: Systematic literature review; Competitiveness; Critical success factors; Startups; Technology-based firms
... Venture capital investors primarily see problems in management skills, the business model, or high competition, which to a great extent corresponds with the results of the majority of studies on investment criteria set by business angels and venture capital investors. Wu et al. (2009) conducted a survey of more than 200 technological startup companies' founders and discovered that for such startups, competitive advantage is determined by the founding team partners' commitments and the financial resources they possess. ...
... It should be noted that in all four studies of entrepreneurs' points of view ( Eisenmann, Howe, and Altringer 2017, Valliere and Peterson 2007, Zobnina 2015, Wu et al. 2009 ), the authors note the importance of the management team's quality and/or the availability of managerial skills among entrepreneurs. In two ( Zobnina 2015, Wu et al. 2009 ) of the four studies, the authors found that, according to entrepreneurs, an important success factor for startup companies is the amount of financial resources that entrepreneurs have at their disposal. ...
... It should be noted that in all four studies of entrepreneurs' points of view ( Eisenmann, Howe, and Altringer 2017, Valliere and Peterson 2007, Zobnina 2015, Wu et al. 2009 ), the authors note the importance of the management team's quality and/or the availability of managerial skills among entrepreneurs. In two ( Zobnina 2015, Wu et al. 2009 ) of the four studies, the authors found that, according to entrepreneurs, an important success factor for startup companies is the amount of financial resources that entrepreneurs have at their disposal. Yet only one (Freear, Sohl, and Wetzel 1992) of the more than 20 studies on investors' points of view we have reviewed noted that for venture capital investors, the amount of financial resources at entrepreneurs' disposal is an important factor for making investment decisions. ...
... In essence, companies may fail to reap the maximum benefits from their strategic resources if those resources are not effectively integrated with other organization's strategic assets and capabilities (Skarmeas et al., 2016;Asiaei and Bontis, 2019). It is widely acknowledged that innovation would be stimulated through IC and entrepreneurial orientation (Wu et al., 2008). The effective synthesis of the various organizations' fundamental critical success factors, e.g. ...
... performance). This indicates that the accumulation of specific organizational capabilities such as IC and intrapreneurial orientation can promote innovation (Wu et al., 2008) leading to positive organizational outcomes (Al-Jinini et al., 2019). It is argued that managers tend to align the underlying resources and capabilities with strategic practices since they maintain that an effective integration of organization's capacities may support them to better organize, synchronize and supporti.e. ...
... The questionnaire was used to measure this variable (Wang et al., 2014), which explained, the human capital (5 items) measurement was adapted from Bontis (1998), Chen et al. (2009), andYoundt et al. (2004). The structural capital (7 items) measurement was based on Bontis (1998), andWu et al. (2008). The relational capital (5 items) measurement was derived from Bontis (1998), and Longo and Mura (2011). ...
Purpose
Drawing largely upon resource orchestration theory, this study aims to contribute to the intellectual capital (IC) literature by testing a model where intrapreneurship mobilizes resources to trigger firm performance. More specifically, this study investigates how intrapreneurship mediates the relationship between IC and financial performance.
Design/methodology/approach
Data was collected using a structured questionnaire administered to a target sample of publicly-listed Iranian companies across a variety of sectors. Archival data supplemented the survey findings to capture financial performance. A structural equation modelling (SEM) approach, using LISREL, was used to assess the measurement and structural models.
Findings
The results supported the hypothesized associations among IC, intrapreneurship, and financial performance. Furthermore, the findings provided some evidence that IC is indirectly related to financial performance through the mediating role of intrapreneurship.
Research limitations/implications
The focus on Iranian publicly listed companies limits the generalizability of results.
Practical implications
Managers need to align the company's strategic resources with other competencies such as intrapreneurial initiatives. The synthesis of knowledge resources and intrapreneurship can help organization to better organize, synchronize and support – i.e. “orchestrate” – their human and structural capital, improving the firm's social and innovation capital and eventually enhancing overall performance.
Originality/value
To our knowledge, this is the first study ever to explore the mediating role of intrapreneurship in the relationship between IC and financial performance from the resource orchestration lens.
... High-tech 105 45.9 Andrén et al. (2003); Appelhoff et al. (2016); Bains (2007); Barney et al. (1996); Becker-Blease and Sohl (2015); Beckman (2006); Beckman and Bur- Collewaert and Sapienza (2016); Colombo et al. (2014); Colombo and Grilli (2005); Cooney (2009); Dai et al. (2016); Dautzenberg (2012); Dautzenberg and Reger (2010a,b (2016); Fontana et al. (2016); Forbes et al. (2006); Gabrielsson (2005); Ganotakis (2012); Ganotakis and Love (2012); Gilmore and Kazanjian (1989); Grilli (2011); Gruber et al. (2013); Gurdon and Samsom (2010); Hagen and Zucchella (2014); Hart (2014); Hart and Acs (2011); Hsu (2007); Hudnut and DeTienne (2010); Juvonen (2013); Khan et al. (2015a); Khan et al. (2014); Khan et al. (2015a); Kirschenhofer and Lechner (2012); Knockaert et al. (2010); Knockaert and Ucbasaran (2013); Knockaert and Vanacker (2013); Kor (2003); Kuschel and Lepeley (2016); Laanti et al. (2007); Lechler (2001); Leung et al. (2013); Li and Li (2009); Li (2008); Li and Liao (2010); Liu et al. (2012); Loane et al. (2014); Lundqvist (2014); Matlay and Westhead (2005); McGee et al. (1995); Meewella (2015); Middleton (2013); Miozzo and DiVito (2016); Mueller and Gemüunden (2009); Munari and Toschi (2011); Nam (2000); Neergaard (2005); Newth and Corner (2009);O'Connor et al. (2006); Organ and O'Flaherty (2016); Packalen (2015); Patton and Higgs (2013); Roure and Keeley (1990); Roure and Maidique (1986); Saemundsson and Candi (2014); Sardana and Scott-Kemmis (2010); Shrader and Siegel (2007); Sine et al. (2006); Sørheim (2005); Stam and Elfring (2008); Townsend and Busenitz (2015); Ughetto (2016); Vanacker et al. (2014); Visintin and Pittino (2014); Vissa and Chacar (2009); Voudouris et al. (2011);Walter et al. (2016); Wang and Wu (2012); Wei et al. (2013); West III (2007); Wing-Fai (2016); Wu et al. (2009); Xiao et al. (2013); Zhao et al. (2015); Zhou (2016); Zhou et al. (2015); Zolin et al. (2011). (2016); Hoogendoorn et al. (2013); Knockaert et al. (2011); Mayer et al. (1990); Müller (2010); Mustar et al. (2008); Vanaelst et al. (2006). ...
... The version of record is available at: http://dx.doi.org/10.1561/0300000077 Asia 29 12.7 Chen and Wang (2008); Dai et al. (2016); Deng et al. (2015); Deng et al. (2015); Federico et al. (2012); Khavul et al. (2012); Kefan et al. (2011);Leung et al. (2013); Li and Li (2009); Li and Liao (2010); Li et al. (2016); Meewella (2015); Nam (2000); Rhee (2008); Sardana and Scott-Kemmis (2010); Schenkel and Garrison (2009); Thakur (1999); Vissa and Chacar (2009); Wang and Wu (2012); Wei et al. (2013); Wing-Fai (2016); Wu et al. (2010); Wu et al. (2009); Xiao et al. (2013); Zhao et al. (2015); Zheng (2012); Zheng and Mai (2013); Zhou (2016); Zhou et al. (2015). ...
... The paper developed an extended model for the relations among entrepreneurial networks and start-up success. Wu et al. (2009) analysed 211 start-ups in the technology-based sector and verified the relationships among entrepreneur resources, trust, founding team partners' commitments, and start-up competitive advantage. The findings showed that, in technology-based start-ups, competitive advantage was determined by the founding team partners' commitments and the resources that an entrepreneur possesses. ...
Entrepreneurship research emphasizes the importance of the individual entrepreneur in both venture creation and growth. However, theory and practice suggest that the vast majority of new ventures are now team-based, and teams play a key role in venture success. As the scholarly interest in this topic has substantially grown in the recent years, the literature has flourished in a rather fragmented way. In
this paper, we take a holistic view and systematise more than 250 papers on entrepreneurial teams, published over 30 years. We use a process approach (i.e., Input-Process-Outcome), depicting team evolution phases, from inception to maturity, linking them to firm performance. We identify gaps, highlighting opportunities for future research.
... Venture capital investors primarily see problems in management skills, the business model, or high competition, which to a great extent corresponds with the results of the majority of studies on investment criteria set by business angels and venture capital investors. Wu et al. (2009) conducted a survey of more than 200 technological startup companies' founders and discovered that for such startups, competitive advantage is determined by the founding team partners' commitments and the financial resources they possess. ...
... It should be noted that in all four studies of entrepreneurs' points of view ( Eisenmann, Howe, and Altringer 2017, Valliere and Peterson 2007, Zobnina 2015, Wu et al. 2009 ), the authors note the importance of the management team's quality and/or the availability of managerial skills among entrepreneurs. In two ( Zobnina 2015, Wu et al. 2009 ) of the four studies, the authors found that, according to entrepreneurs, an important success factor for startup companies is the amount of financial resources that entrepreneurs have at their disposal. ...
... It should be noted that in all four studies of entrepreneurs' points of view ( Eisenmann, Howe, and Altringer 2017, Valliere and Peterson 2007, Zobnina 2015, Wu et al. 2009 ), the authors note the importance of the management team's quality and/or the availability of managerial skills among entrepreneurs. In two ( Zobnina 2015, Wu et al. 2009 ) of the four studies, the authors found that, according to entrepreneurs, an important success factor for startup companies is the amount of financial resources that entrepreneurs have at their disposal. Yet only one (Freear, Sohl, and Wetzel 1992) of the more than 20 studies on investors' points of view we have reviewed noted that for venture capital investors, the amount of financial resources at entrepreneurs' disposal is an important factor for making investment decisions. ...
Only a small percentage of startups attract capital from venture capital investors. To determine the factors which owners of startups consider the most important for attracting seed venture investments, the founders of 40 startups in Latvia and Russia were questioned. The researchers compared organizational and financial factors’ importance for two groups of entrepreneurs: those who succeeded and those who failed in attracting funding. The results of the study indicate certain differences between the viewpoints of founders and investors regarding success factors. Based on the factor and regression analysis, the authors developed a model to forecast success in capital attraction.
... The scope of studies that examine team processes is relatively wide. Specifically, it has been found that a shared team vision enhances internal and external integration (Chen, 2015), that conflict negatively affects team performance , and that trust augments team performance and new venture competitiveness (Wu et al., 2009). It has also been found that routines have mixed effects upon team performance (Lin et al., 2017), that learning enhances firms' competitive advantage (Xiong, 2020), and that information exchange within new venture teams strengthens innovation performance . ...
... The three major behavioral outcomes studied are innovation Mai et al., 2019), strategic decision making ) and management practices (Khavul et al., 2010a). The most commonly employed performance outcomes investigated include economic performance such as IPO pricings (e.g., Wang et al., 2018), financial performance (Guo et al., 2019) and the competitive advantages of new ventures (Wu et al., 2009;Xiong, 2020). Notably, most of the studies within this sub-theme are cross-level; that is, they mainly discuss the influence of team behaviors at an organizational level. ...
While research on new venture entrepreneurship has been predominantly conducted in Western countries, East Asian start-ups have gained global relevance in recent years. In this article, we systematically review studies on new venture entrepreneurship in East Asia published in Social Science Citation Index (SSCI)-listed journals between 2000 and 2020 and find that the number of papers annually published has been rapidly increasing. However, the research body is highly unbalanced, as most articles are single-country studies focused on China, apply a quantitative methodology, and concentrate on topics such as entrepreneurial strategies and new venture entrepreneurs’ personal attributes and networks. Moreover, a majority of studies provides no or only a weak consideration of the national or subnational context. More strongly contextualized research on countries such as Japan and South Korea and on less studied themes such as culture, entrepreneurial financing, entrepreneurial teams, new venture internationalization and new venture entrepreneurial intention is desirable.
... • Age, gender, educational background, marital status, work history (Lin 2010;Golec and Kahya 2007; • Personality, emotional stability, self-confidence, social responsibility, effective use of time (Golec and Kahya 2007;Dursun and Karsak 2010;Lin 2010;Aggarwal 2014;Zhang and Liu 2011) • Listening and writing skills, the ability to persuade others (Golec and Kahya 2007;Kilic et al. 2020;Goyal and Gupta 2020) • The ability of analysis, risk-taking, innovation, organisational sensitivity and organisational superiority (Goyal and Gupta 2020;Golec and Kahya 2007) • Skills related to planning, organising, controlling, risk management, strategy formulation (Golec and Kahya 2007), in several studies, leadership capacity, adaptability, marketing capability, learning (Aggarwal 2014;Wang 2010;Dursun and Karsak 2010) • Characteristics such as technical knowledge, professional efficiency, use of new technologies (Lin 2010;Sadeghi 2016;Kilic et al. 2020; As can be seen, various criteria have been reviewed and candidate team members have been evaluated considering these criteria. The study, conducted by Wu et al. (2008), examined four factors influencing the formation of effective team members in technology-based start-ups in Taiwan, including entrepreneurial resources, the commitment of founding partners, trust, and competitive advantage of start-ups. Finally, according to theories of resourcebased (RBV) and social capital view, in technology-based start-ups, entrepreneurs can prevent the failure of venture activities by supporting start-up founding partners as well as increasing the competitive advantage of start-ups. ...
... Finally, according to theories of resourcebased (RBV) and social capital view, in technology-based start-ups, entrepreneurs can prevent the failure of venture activities by supporting start-up founding partners as well as increasing the competitive advantage of start-ups. Effective founding partners also need to provide complementary and important resources, which can increase the collaborative commitments of venture business team partners to startups (Wu et al. 2008). ...
... In the following study, authors Wu et al. [51] overlooked the development of a framework to link founding a team and start-up competitive advantages in the context of the Taiwanese technology-based ventures. After distributing 2000 questionnaires to technology-based firms located in Taiwan only 211 respondents filled the questionnaire correctly and that sample size was used for research. ...
... The research contributed towards the intention to develop and test entrepreneurial intentions model incorporating risk perception, entrepreneurial motivation, and intention, along with the role of a recessionary economic context. 7 Wu, Wang, Tseng, Wu [51] To link founding team and start-up competitive advantage in Taiwanese technology firms ...
... Startups face various difficulties to survive (Kee et al., 2019), and about 90% of them experience failure (Kee et al., 2019;Wang and Wu, 2012). Firms can remain and grow due to their competitive advantages regardless of environmental and external evolutions (Wu et al., 2009). Startups are affected by different factors such as competitors and the dynamic environment because of their specific conditions (Crowne, 2002). ...
Startups have different conditions and characteristics than other companies, so the leader, as one of the main elements of the company, can play an important role in properly training employees and discovering new opportunities and leading the company towards competitiveness. Strengthening intangible assets and increasing entrepreneurial behaviors are essential for the success of companies. A servant leadership style that strengthens employee self-efficacy and entrepreneurial orientation can play an important role in effectively leading startups towards better competitiveness. However, empirical evidence for this relationship is scarce. The present study examines the mediating role of self-efficacy and entrepreneurial orientation in the relationship between servant leadership and competitiveness. Data were collected from a sample of 230 start-up employees. Data analysis was completed through a two-stage partial least squares structural equation modeling technique. At the first stage, the measurement model was examined for construct validity and reliability, whereas at the second stage, the structural model and by implication the research hypotheses were tested. The results show that the relationship between servant leadership and competitiveness is mediated positively and significantly through self-efficacy and entrepreneurial orientation. While the direct impact of servant leadership on competitiveness is not strongly supported.
... The capital invested by the entrepreneur (Wg 16 ¼ 4:01%) was considered the least important KPI, followed by the founding team experience (Wg 17 ¼ 4:18%) and the scholarship level of the employees (Wg 13 ¼ 4:34%). The engagement of the work team in the development of activities, aiming to reach the established goals, is a factor of greater relevance for the start-up's competitiveness (Wu et al., 2009). Several research have been demonstrating the role of education and the experience of founders as key factors for start-ups' growth and competitiveness (Colombo and Grilli, 2005;Marullo et al., 2018;Rydehell et al., 2019;West and Noel, 2009). ...
Purpose
The purpose of this paper is to propose a competitiveness measurement system for start-ups considering multiple critical success factors.
Design/methodology/approach
The methodological approach uses concepts from key performance indicators (KPIs) and multi-criteria decision analysis (MCDA) based on the fuzzy AHP (FAHP) methodology to weight the criteria related to fundamental points of view (FPVs) and critical success factors (CSFs).
Findings
Data collection was performed with 21 specialists and 28 start-ups, which returned the weights and performance of CSFs and FPVs related to the start-ups’ competitiveness. The results show only one start-up had a highly competitive global performance. In addition, all start-ups showed low competitiveness related to industry 4.0 technologies.
Originality/value
The article collaborates with existing research as a starting point for discussions on the subject, considering that previous research did not address the measurement of the start-ups’ competitiveness level through multiple factors, as developed in this article. In addition, we provide decision-makers and other stakeholders in the start-up ecosystem with a robust measurement system to assess business competitiveness and diagnose the company’s situation.
... HC involves natural characteristics, like intelligence, and other abilities learned by scientific literacy or work experience (Wu et al., 2009;Tihula and Huovinen, 2010;Wagener et al., 2010). HC includes market expertise gained through formal schooling, previous experience or both in the field of entrepreneurship. ...
Purpose
Entrepreneurship is known to be important to the economy, and many scholars across the globe have researched it from a number of viewpoints. Currently, there is a need for an academic study to explore this area by combining sustainability value creating practices and the efforts of current entrepreneurs towards the said target, particularly in the case of the agricultural sector. While the entrepreneurship studies have mostly focused on the determinants of entrepreneurial opportunity recognition, few studies have attempted to analyze the factors influencing the entrepreneurial alertness (EA) of students, especially in relation to agricultural students. To fill this gap, this work investigated the impact of human and social capital on EA among the students of agricultural higher education in Iran.
Design/methodology/approach
The sample consisted of 254 agricultural students in higher education from Ilam province in the Islamic Republic of Iran, selected by the stratified random sampling method for the study. Modeling of structural equations was used in inferential statistics.
Findings
According to the results of the trial, human resources and social capital (SC) have been seen to have a strong, optimistic and measurable impact on EA. Key findings also show that human capital (HC) has an indirect, optimistic and important effect on EA through the mediator role of SC. Establishing higher education science teams, groups, networks and associations can foster opportunities to create and develop relationships and communication between agricultural students and entrepreneurs.
Originality/value
These findings illustrate the value of human and social resources in fostering entrepreneurship alertness among Iranian students of agricultural higher education. Considering the research results, the authors recommend some theoretical and realistic implications and suggestions for ways of promoting and increasing EA among farm students to encourage sustainable growth of agricultural careers in western Iran.
... In addition to the numerous definitions that offer different perspectives, the extensive terminology challenges research. In addition to entrepreneurial teams, the literature refers to new TMTs, venture teams, start-up teams, family teams or founding teams (Ensley and Hmieleski, 2005;Wu et al., 2009;Hauser et al., 2012;Zhou et al., 2015). To outline the conceptual boundaries of entrepreneurial teams, we strive for a definition, which offers a common ground for the different terms and definitions used in contemporary research on entrepreneurial teams and emphasizes the dynamics of entrepreneurial team composition. ...
Purpose
The main objective of this study is to explain the relationship between members' cultural values on structure and performance of the entrepreneurial teams that located in Tehran.
Design/methodology/approach
Data used in this study are collected by a questionnaire distributed among managers and other executive members of SMEs located in Tehran. One hundred and thirty-nine participants completed the questionnaires, and their responses were analyzed using partial least squares technique. Measures showed good convergent and discriminant validity. Furthermore, Cronbach's alpha, as reliability indicator for all measures, is at the acceptable level.
Findings
Research finding shows that all hypothesis supported in Iran contex. Entrepreneurial team members' cultural values have positive and significant effect on the entrepreneurial team structure. Entrepreneurial team members' cultural values have significant effect on the entrepreneurial team performance and also, the structure of the entrepreneurial team has a positive and significant effect on the entrepreneurial team performance.
Originality/value
These studies mostly focused on technical dimensions of entrepreneurial teams and overlooked the cultural values of their members.
... It includes entrepreneurial knowledge and skills (Linan et al., 2013). Some scholars consider human capital to include intrinsic skills such as intelligence and other skills acquired through education or professional experience (Wu et al., 2009;Tihula and Huovinen, 2010;Wagener et al., 2010). In other words, human capital is an entrepreneurial knowledge acquired through education, experience or both. ...
Purpose
Although extensive governmental efforts have taken place to promote entrepreneurship in Iran, based on global entrepreneurship monitor report, the rate of perceived opportunities among young people, especially those with university education, has dropped. Since the perceived entrepreneurial opportunities are the first and most important step in the entrepreneurship process, this study identified the factors affecting the entrepreneurial opportunity recognition in Iranian higher education.
Design/methodology/approach
The statistical population included 127 senior undergraduate students in all majors of agriculture at Ilam University. The sample size was determined by using the Krejcie and Morgan’s (1970) sampling table to be 100 senior undergraduate agriculture students at Ilam University, Ilam province, Iran, selected through a stratified random sampling technique.
Findings
The results showed that the perceived entrepreneurial opportunity among students was moderately low. According to structural equation modeling, the alertness, human capital, social capital and environmental support variables had a positive and significant effect on the entrepreneurial opportunity recognition.
Research limitations/implications
Regarding the research implications, the present study, with providing and testing a model for developing the entrepreneurial opportunity recognition among students in a developing country (Iran) with diverse cultures and values, has improved the literature of entrepreneurship in higher education.
Practical implications
Based on results instructors in higher agricultural education can use active teaching and learning methods, such as creating ideas, experiential and service learning, teamwork and practical work, critical thinking and problem-solving in education. Also, financial, technical and consultative support of instructors and managers in agricultural colleges to implement, launch and commercialize agricultural students' entrepreneurial ideas and projects is needed.
Originality/value
The findings indicated the importance of alertness, human capital, social capital and environmental support on the entrepreneurial opportunity recognition among students. Findings showed that ecological approach could be used to develop students' entrepreneurial opportunity recognition.
... Therefore, the concept of a team at the early stage is more concerned with the individual traits of the founding members and individuals (Lechler, 2011), their motivation (which often determines if a team member has a share of the start-up's capital) and full commitment to the fulfilment of the idea. Experienced team members can focus on the main risk factors and evaluate the needed resources at this stage, while the utilization of a personal network and trust capital at the early stage of technological development is paramount as the team can acquire necessary resources and a competitive advantage, necessary for business development (Wu et al., 2009). A successful team includes employees, their experience and skills (Teal and Hofer, 2003). ...
The purpose of the paper is to create grounded theory to reveal the problems of the right team development process of the early stage start-ups and to explain how the main challenges of the process are being solved. A structured grounded theory (GT) has been chosen based on the combination of deductive and inductive approaches, revealing a contextual epistemological view, which is important when explaining the phenomenon through the experience of the research participants. GT helped to reveal concepts and their relations, relevant to the understanding of a right team of start-ups. The concept of the right team of an early stage start-up includes primary founders having the right competences, having a team leader and other team members having the right competences. The competences of the right team include knowledge, experience and characteristics that influence the development process and help successfully overcome the challenges of an early stage start-up.
... Social network is referred to as the network of relationship between the individuals and friends, relatives, family, including the colleagues which could facilitate the availability of social capital toward entrepreneurs (Storey and Greene, 2010; Wu et al., 2009). ...
The purpose of this study were: (1) studying the direction of group development and network of Thai SMEs, (2) analyzing the approach method to build effective business group and network of Thai SMEs in future, and (3) finding the concept of creating group of business connection and building Thai SMEs network to achieve the sustained development. Data were collected from OSMEP Thai SMEs database, and the samples were collected from 7 clusters; 4 regions, of Thailand. The research was conducted by using focus-group approach, and the amount of participants were set to 12-15 people per each group. The results indicated that; first, the direction of Thai SMEs group development and network started from the informal group and grown up themselves to be more formal one. Second, the appropriated method to build up an effective business group and network are; having quality communication channels, using introspection work process, and being in good collaboration of stakeholders. Lastly, the concept of creating group of Thai SMEs in which to achieve the sustained development is that, the SMEs entrepreneurs should maintain their product quality, being a part of their own community, and having growth mindset.
... The results of this study showed that all elements are influential factors of start-up. According to the previous studies, many studies supported that the previous work experience (Henry et al., 2003;Zhao et al., 2005), the family background (Storey & Greene, 2010;Wang & Wong, 2004), the education and training (Packham et al., 2010;Storey & Greene, 2010), the culture and social norms (Gomezelj & Kusce, 2013;Pillis & Reardon, 2007), social network (Fornoni, Arribas & Vila, 2012;Wu et al., 2009), and the ease of accessing capital (Sesen, 2013), are the factors that drive entrepreneurs start-up; therefore, all the above elements were tested to identify factor drive youth Thai entrepreneurs start-up business. However, the two outstanding elements that facilitate the start-up of youth Thai entrepreneurs are "social network" and "culture and social norms". ...
The purposes of this study were: (1) identifying the most influential environmental factors driving Thai youth entrepreneurs to start up a business, (2) investigating the key elements of success for Thai youth entrepreneurs, and (3) identifying the differences among the success factors of two types of entrepreneurs; inherited and self-start-up entrepreneurs. Data were collected from Thai entrepreneurs whose ages were not more than 35 years old via online questionnaires and questionnaire sets. There were 212 respondents who participated in this study, divided into 121 self-start-up entrepreneurs and 91 inherited entrepreneurs. The study examined the influential factors that drive youth Thai entrepreneurs to start-up business by using descriptive analysis. The key elements of success for entrepreneurship were investigated by using Pearson Correlation, and the differences among the success factors of both entrepreneurs' types were identified by using Independent sample t-test. The results indicate that "social networking" and "cultural and social norms" were the main factors that facilitate Thai youth start-up new business. In terms of the key success factors, "ease of access to capital" was the most powerful element among environmental factors toward entrepreneurial success; while, "creative" and "self-efficacy" were the most powerful elements among psychological factors toward entrepreneurial success.
... In addition to the numerous definitions that offer different perspectives, the extensive terminology provides challenges for research. In addition to entrepreneurial teams, literature refers to new top management teams, new venture teams, start-up teams, family teams, or founding teams (Ensley and Hmieleski 2005;Wu et al. 2009;Hauser et al. 2012;Zhou et al. 2015). ...
Entrepreneurial teams are dynamic entities that frequently experience the exit of individual team members. Such entrepreneurial team member exits (ETMEs) entail serious consequences for the exiting individual, the remaining team, and the performance of the affected venture. While ETMEs are receiving increasing scholarly attention, the research landscape is still considerably fragmented. This is the first article to take stock, analyze, and discuss this crucial and emerging field of research by providing a systematic review of the literature on ETMEs. We identify central themes comprising of antecedents, routes, consequences, and the contextual embeddedness of ETMEs and integrate them into a comprehensive processual framework. Based on this framework, we contribute to the research on ETMEs by discussing the themes in the light of promising theoretical perspectives, introducing novel ideas, concepts, and approaches to enrich future avenues. Specifically, we propose to expand the concept of team heterogeneity to advance our understanding of antecedents as well as to investigate power relations and negotiation behavior within ETME routes. In addition, we offer ways to resolve the sometimes inconsistent findings in terms of venture consequences and present a fertile approach for a more in-depth cultural contextualization of the phenomenon.
... Podría decirse que estos recursos de red provocan un círculo vicioso, ya que, al producir ventajas competitivas, aumentan el compromiso de colaboración entre las partes, por ello, vuelven a crear más alianzas y ventajas competitivas (Wu et al., 2008). De aquí se deduce que los recursos de red se relacionan positivamente con el beneficio de la organización (Yao et al., 2009). ...
... Beyond the existence of a leader, an entrepreneurial type of leadership (characteristics of risk-taking, innovativeness and proactiveness) can also stimulate ET members to be more creative (Chen, 2007). Furthermore, it is interesting to note that it is not the resources that a leader brings to the table that are critical, but rather it is the trust that his or her fellow teammates have in the leader that enhances people's commitment to cooperation (Wu et al., 2009). It should also be noted that the initial trust and commitment generated are very beneficial to the subsequent growth stage of the enterprise (Wang and Wu, 2012). ...
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... The human resources formed by institutional support and culture have significant value as the factors determining superiority over competitors (Wu et al., 2009). The resource-based view explains that retention of superiority is achieved only when businesses create values in a unique way that cannot be easily copied by competitors, thereby implying the importance of investment in and support for a company's human resources. ...
... It addresses the significant trend in EE from a classroom-centered education to experiential learning [12,13] in which students are exposed to a large extent to a real-life entrepreneurship context. Many learning methods are group-based [13], which allows not only for team learning (henceforth: TL), but also reflects the realities of new venture teams [14]. An example of group-based experiential EE is the Lean Launchpad initiative that applies the principles of customer development [15] and Lean Startup [16] to technology-based startup projects. ...
Contemporary entrepreneurship education (EE) is often based around a team-based challenge such as creating a new venture or solving a startup problem. A creative and professional solution to such a challenge requires individual and team efforts. At the level of the individual student, self-regulated learning (SRL) is proposed as an effective way to learn in entrepreneurial projects. At the level of a student team, team learning and psychological safety are hypothesized to contribute to group performance. Yet, there is little evidence to support these claims.
... Joardar and Wu (this issue) developed a framework based on individual-level variables to predict entrepreneurial success both within and outside the entrepreneurs' country of origin (Chamberlin, Doutriaux, & Hector, 2010;Hechavarria & Reynolds, 2009;Huang, Chou, & Lee, 2010;Miles, Munilla, & Darroch, 2009;Pardo-del-Val, 2010;Ripolles, Blesa, & Roig, 2010;Safón, 2009;Sebora & Theerapatvong, 2010;Wagener, Gorgievski, & Rijsdijk, 2010;Wu, Wang, Tseng, & Wu, 2009). They integrated two streams of literature-that of entrepreneurship orientation (EO) and liability of foreignness (LOF)-to examine their dual effect on venture performance. ...
... A common characteristic of entrepreneurs is their ability to harness available resources in an innovative manner and the ability to transform their businesses and make them grow. In this sense, the entrepreneur can be more associated to the term start-up company, with a high profit potential and rapid growth but also with a higher risk, than a small business (Wu et al. 2009). ...
In this paper, the influence of entrepreneurship on service management research is examined. Entrepreneurship research occupies a central place in organizational theory and strategic thinking, but its theories and models have little influence on business management. Entrepreneurship research can have a better integration with other areas of management, but there is still certain isolation. This article reviews the emerging areas in entrepreneurship research that provides complementary theoretical framework to service business models. In order to determine the areas in service management research in which entrepreneurship theories can be useful, a classification of the papers published in the last 2 years in the JCR service management journals is carried out. The study concludes that innovation is the most outstanding priority in service management research that can be enriched by entrepreneurial theories. The entrepreneurial approach to networks and institutional environment are the theoretical frameworks that better suit to introduce entrepreneurship variables as antecedents in business innovation models.
... In turn, the core competencies enhance the firm's competitiveness. The competitive advantages of high-tech start-ups are the team partners' commitment and the entrepreneur's resources (Wu et al., 2008). ...
Purpose
The purpose of this research is to explore, through the lens of a resource‐based view and dynamic capability theory, how new ventures in high‐technology industries accumulate resources to survive and sustain competitive advantage.
Design/methodology/approach
This study used the multiple case study approach completed for three integrated circuit (IC) design companies in Taiwan by conducting in‐depth interviews with senior executives in each case. Through the aforementioned case studies, the paper was able to summarize and verify the key elements and steps to find the customer and achieve the firm growth.
Findings
It was found that three core elements, technology, networking and legitimacy are necessary. In addition, there are emerging and embedding steps adopted by each case in this study for new ventures to successfully penetrate the market and sustain the competitive advantage.
Research limitations/implications
The findings are focused on one country, and three cases of a specific industry in Taiwan. Future research can be conducted in different cultural contexts and different industries.
Practical implications
New ventures in high‐technology industries can follow the elements and steps suggested in this research paper to accumulate their initial resources. The strategy has been proven by the case studies therein and can be considered highly applicable.
Originality/value
The paper concludes that three key resources for sustaining a company's competitive advantages are necessary. Moreover, a well‐orchestrated management is especially essential for new ventures in high‐technology industries to succeed.
Case competitions provide a unique opportunity for students at all academic levels to amalgamate and synthesize everything they learn in the classroom into an applied real-world context utilizing the case construct. Most of these contests are ungraded, thereby allowing students, mentors, and faculty on both sides of the proverbial desk to be highly candid in their feedback without creating an uncomfortable situation, allowing it to be more constructive, affecting the culture of a traditional classroom or their grade point average, or impacting teaching evaluations. The result is often an analytically rigorous paper or PowerPoint presentation where students can adroitly demonstrate their knowledge of the concepts, effectively defend their recommendations, engage in meaningful Q&A, and follow best practices related to teamwork. This study aims to explore the mentorship and coaching strategies for case competition teams in undergraduate and graduate academic programs. The two most significant factors affecting case competition rank are “Mentor Hours” and “Effort Invested as a Team.”
This chapter examines the antecedents of patronage intention and how they relate to consumer shopping motives in organized retailing. A practical approach to customer segmentation is proposed. As a result, a structural model of the pillars of customer-centricity in organized retailing is attempted. The hypothetical model of consumer preference, shopping motivation, and patronage intention (SMPI Model) is first proposed and tested using the structural equation modeling approach. Two of the nine consumer preference factors (store atmospherics and problem-solving) motivate super/hypermarket store consumers utilitarianly. in comparison, eight factors (store atmospherics, pricing and value, assortment, in-store delights, convenience, product/service quality and reliability, person-to-person experience, and problem-solving) motivate consumers in a hedonistic manner. The overall result of the SMPI model re-establishes the notion that shoppers who are strongly motivated by hedonic components are more likely to be satisfied with a supermarket/hypermarket that can provide them the hedonic value of their shopping outings and, therefore, to be committed to the supermarket. Furthermore, shoppers who buy for hedonic motives place more value on the store. In addition, the study tested the moderating effect of consumer demographic characteristics. The main result and contribution of the empirical analysis, namely the segmentation table, is presented for retail store managers as a quick reference for strategy development.KeywordsCustomer-centricityRetailingBrick-and-mortar store
The aim of the study is survey the Role of Intermediary competitive intelligence
on Relationship between psychological empowerment and innovative behaviours.
To this end, reviewing the conducted research and using the research literature, the dimensions and components associated with the concept of competitive
intelligence, psychological empowerment and innovative behaviours have been
discovered. The objective of the research is descriptive method. Based on the variables, a questionnaire relying on 43 questions has been developed, the validity of which was confirmed by an esteemed professor and reliability is of the questionnaire, respectively (vary from 0.78, 0.92, 0.76). The statistical population of the study consists of all managers and experts Study on the east cement company. To test the hypothesis of this study was used Pearson correlation coefficient and hierarchical regression test. The results showed that the Represents confirmation of the role of the moderator of the relationship between competitive intelligence,psychological empowerment and innovative behaviours. As well as results in particular show that two of five dimensions of competitive intelligence
(competitive risks and vulnerabilities) as the moderator of the relationship between psychological empowerment and innovative behaviours. Finally suggestions in this regard and we present to executives of east cement company.
In today’s ever-changing environment, entrepreneurial teams must be able to improvise when designing business solutions. Still, the way in which improvisation delivers firms a competitive advantage remains unclear. Drawing on action learning theory, this study empirically examines how entrepreneurial improvisation affects a start-up’s competitive advantage. Accordingly, we develop a moderated mediation model of ambidextrous entrepreneurial learning—a balance between exploratory and exploitative learning—and team reflexivity; and empirically test it on a two-wave survey of 149 Chinese start-up teams in the Yangtze River Delta. Our path analyses indicate that entrepreneurial improvisation may result in the ambidextrous learning of an entrepreneurial team, which in turn leads to a start-up’s competitive advantage. Furthermore, the positive relationship between entrepreneurial improvisation, ambidextrous entrepreneurial learning, and start-up competitive advantage becomes significantly stronger when the entrepreneurial team possesses a higher level of team reflexivity.
The purpose of this paper is to verify the impact of human capital efficiency (HCE) on the competitiveness of new ventures and their performance. More specifically, it examines the correlation between human capital efficiency coefficient and Net Profit (NP), Return on Assets (ROA), Employee Productivity (EP) and Profitability (P).Using data of Serbian companies nominated for the award ,,Entrepreneur of the 2016 year" and HCE coefficient, the authors construct regression models to examine the relationship between corporate value creation efficiency and firms' financial performance.The research confirms that the financial performance of entrepreneurial firms in Serbia remains influenced by the efficient use of human capital.Entrepreneurs must recognize the relevance of managing the intangible resources, and that investment in human capital can enhance firm performance. The results extend the understanding of the role of human capital in building sustainable advantages for entrepreneurial firms in the knowledge era. Moreover, the findings revealed that long-term success should rely on intangible assets.
The purpose of our study is to examine the utilization of R&D expenses in
knowledge‐intensive French companies in the manner of development of future
assets recognized and accepted by the current national accounting framework.
We included 41 French research, development, testing services companies in an
empirical calculation of research asset value. The financial information was
obtained from the financial database „Point Risk“ for the purpose of addressing
the main research question. The model used in this study is the Research Asset
Value Calculation developed by Damodaran (2009). This model investigates the
process of capitalization of R&D expenses within French companies. French
research, development, testing services companies capitalize on its R&D expenses
into concrete assets. The main contribution of our research is the examination
of the R&D expenses and its recognition as a final performance. This study
presents the first confirmation of the capitalization of R&D expenses within
the company's value.
Start-up enterprises have emerged as a socio-economic system for developing the regional economy and linking innovative ideas to consumer segments and large industries. These enterprises have grown over family business firms and are mostly founded on conventional wisdom. Therefore, start-up enterprises have narrow leadership vision and low-profile business models. Based on thorough literature review, this chapter discusses the current scenario of start-up enterprises in emerging markets. It also discusses the entrepreneurial ecosystem, marketing strategies, and Latin American perspectives on start-up enterprises. In addition, general and specific objectives of the study, along with justification for this research study, are presented in this chapter.
This research tries to represent, under a statistical scheme, the use and
disposition of Information and Communication Technologies (ICTs) as a tool to
increase average productivity levels within companies and under the Cobb
production function. Douglas determines the ICT impact. A survey was designed
under a probabilistic scheme so that the results obtained can be generalized for
the total population. The population of companies that integrate with 10
workers and more gives a total of 157, 611 and the total sample selected is 6,
941 companies. The available results are those presented for 42 companies. The
delay that Mexican companies present in their technological equipment allows
them to be placed at a disadvantage compared to multinational companies
established in our country. The companies collected for this analysis place most
of their sales in the national market, so it is of significant importance the
decision making by the top managers to rethink investment efforts aimed at
Information and Communication Technologies. This research paper is original
and its value is related to Small and medium enterprises (SMEs) in Mexico
represent one of the main entities of economic activity that supports the bulk of
the Mexican population.
Key words: SMEs, innovation, productivity, ICTs.
This chapter introduces the role of social capital in higher education institutions, thus explaining the concept of social capital, the dimension of social capital in higher education institutions (i.e., structural social capital and communication, relational social capital and social integration, and cognitive social capital and coordination), and the application of social capital in higher education institutions in terms of social networks, social norms, social trust, and institutional trust. Social networks, high institutional trust, social trust, and a tendency to comply with regulations are the important social characteristics that facilitate the application of environmental initiatives in higher education institutions. The enforcement of social capital will be accompanied by successful higher education institution initiatives combined with significant change in the culture of higher education institutions, thus leading to the achievement of sustainability in higher education institutions. Understanding the role of social capital will significantly enhance the educational performance and achieve educational goals in higher education institutions.
Encouraging entrepreneurship has become a topic of high priority in university policy. Entrepreneurial activities are regarded as a driving force of innovation. The popularity of entrepreneurship education is reflected in the large and growing number of institutes of higher education that offer courses on the topic. However, entrepreneurship is still underrepresented in engineering education. This paper presents and evaluates entrepreneurial activities at Graz University of Technology.
This chapter introduces the role of social capital in higher education institutions, thus explaining the concept of social capital, the dimension of social capital in higher education institutions (i.e., structural social capital and communication, relational social capital and social integration, and cognitive social capital and coordination), and the application of social capital in higher education institutions in terms of social networks, social norms, social trust, and institutional trust. Social networks, high institutional trust, social trust, and a tendency to comply with regulations are the important social characteristics that facilitate the application of environmental initiatives in higher education institutions. The enforcement of social capital will be accompanied by successful higher education institution initiatives combined with significant change in the culture of higher education institutions, thus leading to the achievement of sustainability in higher education institutions. Understanding the role of social capital will significantly enhance the educational performance and achieve educational goals in higher education institutions.
Purpose
– The purpose of this paper is to empirically test for fundamental attribution error (FAE) – the naturally occurring bias of humans to over-attribute business success to celebrity-entrepreneur disposition.
Design/methodology/approach
– Employing a five-step process, this paper measures and tests for FAE bias in entrepreneurial situations. The methodology includes anecdotal historical evidence; developing a FAE survey instrument; having 101 respondents classify variables; statistically testing and validating the instrument; and then statistically identifying the importance of each factor with a sample 105.
Findings
– Significant statistical evidence for an active FAE bias was found. People do tend to attribute business success to entrepreneurial dispositions, rather than team behavior and circumstantial outcome factors which can reduce the effectiveness of public policy.
Research limitations/implications
– There is minimal research on FAE in entrepreneurship effecting public policy, thus there is a need for research to better understand factors of business outcomes actually based on entrepreneurial dispositions vs team behavior and circumstantial-situational factors.
Practical implications
– FAE bias may lead the general public, entrepreneurs, and public policy makers to overemphasize the impact of the entrepreneur’s behavior and especially the dispositional factors of the celebrity-based entrepreneur when assessing causation of firm performance. This would under-emphasize the value of other organizational factors. Misidentification of true cause-effect factors may lead to inappropriate managerial conclusions and introduction of error in public policy decisions.
Originality/value
– Although FAE is primarily a psychological literature concept, this is the first study to contribute empirical evidence of the FAE of professionals employed in business as it applies to entrepreneurship and economic outcomes.
Purpose
– The purpose of this paper is to explore direct and indirect effects of pre-venture managerial experience (PVME) on new venture innovation. Using opportunity-costs framework, the following questions are explored: does the entrepreneur's PVME directly affect the extent of innovation in the new venture? What is the role of expectation for high returns in the relationship between PVME and innovation? What is the role of expectation for high returns in the relationship between PVME and innovation? Is there a relationship between abilities and expectancies and does it affect innovation?
Design/methodology/approach
– Data were obtained from the Panel Study of Entrepreneurial Dynamics II, which is a national database of individuals in various stages of starting a business. Overall sample consisted of 982 nascent entrepreneurs. Statistical methods explored a multiple serial mediation model using OLS regressions supplemented by analyses based on bootstrapping for assessment of indirect effects.
Findings
– PVME effect on innovation is associated with abilities and financial motives, supporting a partial serial multiple mediation model in which PVME affects innovation indirectly through abilities and where abilities affect innovation directly as well as indirectly through expectations. Results also suggest a suppression effect and a possible negative effect of PVME.
Originality/value
– Abilities facilitate innovation, which has implications for policy makers who aim to enhance innovations, for investors in assessing potential of innovations, and for entrepreneurs who aim at improving innovation. Shedding light on the mechanism by which prior experience affects innovation, including the role of financial expectations and how abilities possibly negate negative effects associated with experience improve the understanding of and ability to enhance innovation and improve new venture competitive stand.
Trabajo en progreso - La asignación de roles, la toma de decisiones, la comunicación, el trabajo en equipo, la designación del poder, entre otras. Son algunos de los factores influidos por la implementación de un modelo de estructura organizacional. Aquella que es sometida a criterio por los socios de una empresa, será uno de los modelos que definirá el comportamiento y el reflejo de una organización frente agentes externos como futuros inversionistas, empleados, alianzas, etc. Una decisión que podría influir en el éxito de una pequeña organización, empresas pequeñas, aquellas ideas de negocio de un grupo de personas, las startups. En este articulo se presentan los distintos modelos de estructura organizacional, los estudios actuales del éxito de las startups y finalmente una discusión frente a un piloto que tiene como objetivo abarcar la correlación que se presenta entre dos modelos de estructura organizacional frente al éxito que tienen las startups.
Purpose
The aim of this paper is to analyze the impact of an entrepreneur's social capital on their access to information, and how such access improves the performance of their entrepreneurial project.
Design/methodology/approach
A structural equations model (SEM) is estimated and validated from a database including information from 282 Argentinean entrepreneurs who answered a questionnaire specifically designed for this research. The analysis of this model allowed the impact of dependent latent variables on the performance of the start‐up to be determined.
Findings
The performance of an entrepreneurial project depends on an entrepreneur's access to finance, markets and information. Specific dimensions of social capital facilitate access to these resources: the relational dimension facilitates access to information; the resources dimension makes access to finance easier; the structural dimension helps the entrepreneur to access markets.
Research limitations/implications
The sample is not large enough to analyze differences among specific types of entrepreneurial projects: for instance, the role of social capital in industrial and service entrepreneurship (activity sector), the differences between the federal capital, Buenos Aires, and the rest of the country (location), and between female and male entrepreneurs (gender).
Originality/value
The results help in understanding which dimensions of an entrepreneur's social capital facilitate access to information and how these specific dimensions enhance the performance of the project. Hence, this paper has managerial and policy implications for the generation of dynamic entrepreneurial projects capable of becoming development drivers.
Purpose
Given the importance of technology in competitive advantage, this paper seeks to better understand the factors associated with entrepreneurs' decision to incorporate innovative technologies in new ventures. It aims to explore three questions: “Are the reasons given for starting technologically innovative new ventures (TINVs) different from those given for starting ventures based on traditional technologies?”; “What is the role of human capital in the TINV startup decision?”; and “Do gender differences exist in the reasons and human capital associated with starting a TINV?”.
Design/methodology/approach
Data were obtained from the Panel Study of Entrepreneurial Dynamics II (PSED II), which is a national database of individuals in various stages of starting a business. The overall sample consisted of 950 individuals. Non‐parametric methods and logistic regressions were used to test hypotheses.
Findings
Results show that men start the TINV for self‐realization reasons, and that wealth seeking and employment reasons are negatively associated with the technology startup decision among women, but not among men. Human capital positively predicts the decision to start TINV, but gender differences exist as well: specific human capital (industry and occupational background) positively predicts the technology startup decision among men, whereas general human capital (education and employment breadth) positively predicts the decision among women.
Practical implications
Better understanding of the factors that motivate and encourage entrepreneurs to utilize innovative technologies is useful for policymakers, practitioners, and educators. This understanding can help when allocating resources for the purpose of encouraging innovation and when trying to train entrepreneurs to enhance competitiveness of new ventures.
Originality/value
The study highlights some of the factors associated with the decision to start firms that are technologically innovative. Given that incorporating technology in new venture is often considered a key factor in sustainability and long term competitive advantage, the study provides possible explanations for potential sources of competitive advantage. Implications for the role of motives and human capital in the startup decision and in the decision to incorporate technology are discussed, with specific reference for male and female owned business.
The aim of this paper is twofold. First of all, we participate in the open discussion on the nature of social capital and we show that the one-dimensional approach is not enough to capture the complex nature of social capital. Second, we present, implement and validate a specific three-dimensional measurement tool that can be used to analyze the role of social capital in further entrepreneurship research. The measurement tool is implemented through a Structural Equation Model, which is estimated and validated from a database including information from 282 Argentinean entrepreneurs who answered a questionnaire specifically designed for this research. Our measurement model considers the dimensions proposed by Koka and Prescott (Strategic Management Journal, 23:795–816, 2002), i.e. relational, resources and structural.
The purpose of this study is to understand interrelationship among organizational service orientation, person–organization fit, and turnover intent in a deluxe hotel. The study involved 311 Korean employees. The results showed a positive relationship between organizational service orientation and employees' person–organization fit. Participants who reported a high level of service orientation were more likely to be appropriate fits for their organization. In addition, person–organization fit was negatively associated with employees' intention to leave the organization. Limitations and future research directions are also discussed.
This study uses resources-base and social capital theories to examine the influences of trust and entrepreneur resources on team member commitments and start-up competitiveness during both the initial and growth stages, and then explores the influences of resources and competitiveness of the initial stage on the growth stage. Empirical results support the following conclusions. In both stages, competitiveness positively associates with the start-up team member commitments; Instead of the entrepreneur or firm resources, what affects team members commitments to the start-up is the team members' trust on the entrepreneurs; Entrepreneur resources and start-up competitiveness accumulate across stages, and competitiveness in the initial stage positively influences new team members commitments in the growth stage.
The present article analyzes the existence of gender differences in the perceptions and attitudes of university students towards
entrepreneurship. It measures perceptions of the public image of the entrepreneur, along with the desirability, viability
and intentionality of students towards creating their own business. The empirical data for this research comes from a sample
of university students who have attended a Business Creation program run by the venture capital association known as Fostering
Entrepreneurs hip in Extremadura, Spain. Data analysis using bivariate and multivariate techniques reveal significant results,
indicating that gender plays a significant role in how the figure of the entrepreneur is perceived and on the intention to
generate new business.
In this article, we provide guidance for substantive researchers on the use of structural equation modeling in practice for theory testing and development. We present a comprehensive, two-step modeling approach that employs a series of nested models and sequential chi-square difference tests. We discuss the comparative advantages of this approach over a one-step approach. Considerations in specification, assessment of fit, and respecification of measurement models using confirmatory factor analysis are reviewed. As background to the two-step approach, the distinction between exploratory and confirmatory analysis, the distinction between complementary approaches for theory testing versus predictive application, and some developments in estimation methods also are discussed.
Technology is crucial for organizations in the knowledge society, but little empirical research has been conducted on technology absorptive capacity and technology proactivity. Based on existing theoretical studies, this article formulates a global model to analyse how technology absorptive capacity and technology proactivity influence organizational learning and organizational innovation, and how these dynamics capabilities affect organizational performance. The model also shows how organizational learning affects organizational innovation. The hypotheses are tested using data from 246 Spanish technological firms. The paper discusses the findings and provides several implications for future research. The findings are important for management practice, especially for firms where technology is the main strategic element.
There is a growing recognition within resource-based theory that mergers and acquisitions (M&A) can play an important role as a means of transferring otherwise non-marketable resources and capabilities. However, this resource-based view has yet to consider in detail the management process issues involved. This paper looks at three cases from the pharmaceutical industry and seeks to begin the development of a resource-based perspective on the management of M&A.
We build on an emerging strategy literature that views the firm as a bundle of resources and capabilities, and examine conditions that contribute to the realization of sustainable economic rents. Because of (1) resource-market imperfections and (2) discretionary managerial decisions about resource development and deployment, we expect firms to differ (in and out of equilibrium) in the resources and capabilities they control. This asymmetry in turn can be a source of sustainable economic rent. The paper focuses on the linkages between the industry analysis framework, the resource-based view of the firm, behavioral decision biases and organizational implementation issues. It connects the concept of Strategic Industry Factors at the market level with the notion of Strategic Assets at the firm level. Organizational rent is shown to stem from imperfect and discretionary decisions to develop and deploy selected resources and capabilities, made by boundedly rational managers facing high uncertainty, complexity, and intrafirm conflict.
Purpose
– The present study in this paper seeks to deal with the crucial topic of growth determinants for ICT start‐ups. In this emerging industry high firm birth rates go hand in hand with a great risk of failure and only one firm out of three survives the first three years.
Design/methodology/approach
– The paper analyzes 220 start‐ups of the ICT service sector and verifies the influence of individual and organisational factors on growth.
Findings
– The paper finds that human capital and working experience have no significant impact on the success of young ICT firms.
Originality/value
– The paper shows that critical growth factors are mostly financing and customer related variables (firm size and capital at start‐up, customer structure, regional market orientation, etc.).
Several theories of relationship marketing propose that customers vary in their relationships with a firm on a continuum from transactional to highly relational bonds. Few empirical studies have segmented the customer base of an organization into low and high relational groups to assess how evaluations vary for these groups. Using structural equation analysis, the authors analyze the relationships of satisfaction, trust, and commitment to component satisfaction attitudes and future intentions for the customers of a New York off-Broadway repertory theater company. For the low relational customers (individual ticket buyers and occasional subscribers), overall satisfaction is the primary mediating construct between the component attitudes and future intentions. For the high relational customers (consistent subscribers), trust and commitment, rather than satisfaction, are the mediators between component attitudes and future intentions.
Relationship marketing-establishing, developing, and maintaining successful relational exchanges-constitutes a major shift in marketing theory and practice. After conceptualizing relationship marketing and discussing its ten forms, the authors (1) theorize that successful relationship marketing requires relationship commitment and trust, (2) model relationship commitment and trust as key mediating variables, (3) test this key mediating variable model using data from automobile tire retailers, and (4) compare their model with a rival that does not allow relationship commitment and trust to function as mediating variables. Given the favorable test results for the key mediating variable model, suggestions for further explicating and testing it are offered.
This paper examines entrepreneurship education in the light of debates about the future of the business school, the nature of the MBA, with which management education is generally synonymous, and the links that need to be created between teaching and research. There is increasing focus on the general utility of entrepreneurial skills and aptitudes (i.e. creativity, independent thinking, opportunity recognition and exploitation, etc.), and it is our contention that entrepreneurship education offers an innovative new paradigm for business school education that answers some of the challenges that are currently levelled against the MBA. Given the breadth of relevance in terms of the issues around Entrepreneurship Education and future pedagogical development in Business Schools, this paper is also well placed as a vehicle to introduce the rest of the coverage in this special issue of TASM. This paper therefore also summarises the papers presented in terms of their contribution to our understanding of the role of entrepreneurship and innovation in higher education. All suggest the need for the broadening of human and social capital, while some propose a fundamental shift in the delivery of professional education.
Purpose
The purpose of this paper is to construct and propose a definition for intangibles derived from the resource‐based view (RBV) of the firm for use in academic research and practical applications.
Design/methodology/approach
Intangibles are defined as a subset of corporate resources. In this paper, various definitions for intangibles are tested against the RBV framework.
Findings
The majority of definitions in the extant literature are (implicitly or explicitly) in synchronization with the RBV. Thus, it is possible to find and propose a common definition for intangibles.
Research limitations/implications
Some researchers argue that the field is still in its embryonic stages and thus the concepts might still be too fresh in order to find a stable common definition.
Practical implications
The paper offers a conceptual lens through which one can clearly link intangibles to strategy and offers a proposed definition of intangibles that incorporates a meta‐review of the literature.
Originality/value
The paper shows that it is in fact possible to accommodate various definitions of intangibles under one common framework and propose a unified characterization.
This research focuses on creating a theory of the "organizational advantage," a new concept identified within business and management. Using social capital research as a foundation for this theory, three of the study's objectives are identified: 1) incorporate different aspects of social capital to identify three common dimensions; 2) explain the role of each dimension in the process of creating and exchanging knowledge; and 3) maintain the belief that organizations are capable of creating extraordinary amounts of social capital on all three dimensions. Additionally, the relationship between social capital and intellectual capital is explored, as is the impact of this relationship upon a firm's perceived organizational advantage. In order for exchange and combination of resources to occur as a means of creating value, the research identifies three necessary conditions, including the opportunity for exchange and combination to occur, the expectation that exchange and combination generates value, and the motivation that exchange and combination in some way will be productive. This research further identifies a fourth condition, combination capability, as a significant factor in value creation. Due to social capital's influence upon the conditions needed for exchange and combination, social capital aids in the creation of intellectual capital. The research further hypothesizes that a firm's ability to create and utilize social capital contributes to performance differences among firms. Several limitations are identified, including omission of the negative impact of social capital upon a firm and the costs associated with creating and preserving a firm's social capital. The findings of the study are generalized to other institutional situations, and areas for future research are identified. (AKP)
Examines the networking strategies of entrepreneurs, including their use of personal and extended organizational networks. Although models of entrepreneurial networking usually do not make distinctions between individuals, organizations, and networks, this analysis considers the impact of social networks of individual entrepreneurs and the extended networks of organizations on the success of entrepreneurs and their companies. The social or personal networks of entrepreneurs can prove to be a cost-effective means of obtaining information that is valuable to the business. Networking of this type involves expanding one's circle of trust. These personal networks are made up of weak and strong ties that together must provide access to diverse information sources. Moving from the personal networks to the extended networks allows entrepreneurs to use indirect ties to expand their access to information and resources. Using these two concepts of networks, two hypotheses are presented. The first proposes that effective entrepreneurs are more likely to systematically plan and monitor network activities while the second proposes that effective entrepreneurs are more likely to undertake actions that increase network density and diversity. With respect to the first hypothesis, those entrepreneurs that are effective are believed to be able to chart their present network, to view effective networks as a crucial aspect of success, and to be able to stabilize and maintain networks. A better understanding of personal networks will help in determining how extended networks are created and in turn strengthened over time. (SRD)
Relationally embedded network ties are examined using evolutionary processes and paths based on two research questions: (1) How do components of social relationships facilitate the evolution of relational embeddedness? and (2) What are the different paths to relational embeddedness? Discussed is how network ties of an emerging firm might evolve toward increased relational embeddedness, specifically due to individual action. This study further identifies ways that entrepreneurs in emerging firms may influence effective opportunity discovery and resource acquisition and firm governance. Case studies were conducted through interviews with 17 entrepreneurial partners in eight computer industry firms, between 18 and 24 months old. Three evolutionary processes—network entry, social component leverage, and trust facilitation- and four evolutionary paths are identified. Findings suggest that ties entering the network through personal relationship may evolve more quickly toward full embeddedness. Also suggested are strategic implications for emerging firms regarding entrepreneurial opportunity recognition, resource acquisition, and effective governance of relationally embedded ties. (JSD)
The "network approach to entrepreneurship" is a prominent theoretical perspective within the literature on entrepreneurship. This literature assumes that network resources, networking activities and network support are heavily used to establish new firms (network founding hypothesis). Further, those entrepreneurs, who can refer to a broad and diverse social network and who receive much support from their network are more successful (network success hypothesis). Based on a study of 1,700 new business ventures in Upper Bavaria (Germany), the article gives an empirical test of the network success hypothesis. It is argued that one reason, why previous studies did not consistently find positive network effects, may be that social capital (network support) is used to compensate shortfalls of other types of capital (human capital and financial capital). This compensation hypothesis, however, does not find empirical confirmation. On the other hand, however, the network success hypothesis proves to be valid in our analyses, i.e. network support increases the probability of survival and growth of newly founded businesses.
This paper introduces a social network perspective to the study of strategic alliances. It extends prior research, which has primarily considered alliances as dyadic exchanges and paid less attention to the fact that key precursors, processes, and outcomes associated with alliances can be defined and shaped in important ways by the social networks within which most firms are embedded. It identifies five key issues for the study of alliances: (1) the formation of alliances, (2) the choice of governance structure, (3) the dynamic evolution of alliances, (4) the performance of alliances, and (5) the performance consequences for firms entering alliances. For each of these issues, this paper outlines some of the current research and debates at the firm and dyad level and then discusses some of the new and important insights that result from introducing a network perspective. It highlights current network research on alliances and suggests an agenda for future research.© 1998 John Wiley & Sons, Ltd.
This paper introduces a social network perspective to the study of strategic alliances. It extends prior research, which has primarily considered alliances as dyadic exchanges and paid less attention to the fact that key precursors, processes, and outcomes associated with alliances can be defined and shaped in important ways by the social networks within which most firms are embedded. It identifies five key issues for the study of alliances: (1) the formation of alliances, (2) the choice of governance structure, (3) the dynamic evolution of alliances, (4) the performance of alliances, and (5) the performance consequences for firms entering alliances. For each of these issues, this paper outlines some of the current research and debates at the firm and dyad level and then discusses some of the new and important insights that result from introducing a network perspective. It highlights current network research on alliances and suggests an agenda for future research.© 1998 John Wiley & Sons, Ltd.
The authors examine the attitudes and behaviors of employees who provide frontline service and address the extent to which relationships vary among male and female employees. The overall model predicts effects of role stress and work/nonwork conflict on customer-contact employees' job performance, job and life satisfaction, and quitting intent. Results of structural equations modeling suggest an important role for work/nonwork conflict overall as well as two areas of interesting variation across gender. Specifically, multisample structural equations analyses suggest that role stress affects female service providers' job performance more negatively than it does males', and that job satisfaction is related more highly to quitting intent among males. Overall, results suggest interesting similarities and differences across gender.
Marketing managers must know the time orientation of a customer to select and use marketing tools that correspond to the time horizons of the customer. Insufficient understanding of a customer's time orientation can lead to problems, such as attempting a relationship marketing when transaction marketing is more appropriate. The author suggests that long-term orientation in a buyer/seller relationship is a function of two main factors: mutual dependence and the extent to which they trust one another. Dependence and trust are related to environmental uncertainty, transaction-specific investments, reputation, and satisfaction in a buyer/seller relationship. The framework presented here is tested with 124 retail buyers and 52 vendors supplying to those retailers. The results indicate that trust and dependence play key roles in determining the long-term orientation of both retail buyers and their vendors. The results also indicate that both similarities and differences exist across retailers and vendors with respect to the effects of several variables on long-term orientation, dependence, and trust.
This paper evaluates a fellowship scheme aiming to overcome attitudinal and operational barriers towards university technology transfer. We propose barriers exist because of the focus of many academics exclusively within a peer review research network. We explore the case of the Medici Fellowship programme that was implemented in biomedical departments across five universities located in the midlands of England. Our evidence suggests that such fellowship programmes, through the retraining of academics, may have a positive impact on the commercialisation of research. In particular, the fellows, through the enhancement of their social and human capital, are able to act as agents of attitudinal change in their host departments and are seen to build bridges into external business networks that can provide early stage funding, market and legal information and help identify potential customers for nascent academic entrepreneurs
High-tech entrepreneurship is an important feature inthe world economy. This study examines the effects of social capital,entrepreneur capabilities, and entrepreneurial strategies on the performance ofnew high-technology ventures. Based on the entrepreneurship, resource-based,and strategic management literature, three categories of factors are developedand used for framing hypotheses: entrepreneurs' capabilities, societalcontexts, and entrepreneurial strategic actions. These encompassed management capabilities, technological capabilities,strategic orientation, resource orientation, management structure, rewardphilosophy, growth orientation, entrepreneurial culture, and social capital.Findings were based on survey/interview results from 125 Taiwanese newbiotechnology and integrated circuit design ventures. Findings indicate that high-technology entrepreneurship is a complexphenomenon with a wide range of factors. Management capability has negativeimpact on new venture performance.The six Stevenson entrepreneurialstrategies have different effects on new venture performance; social capital infact moderates the effects of entrepreneurial strategies and resources on firmperformance; and social capital is an asset only when certain entrepreneurialstrategies were adopted. Social capital, entrepreneur capabilities, and entrepreneurial strategiesare found to interact with each other. In short, there is no single path to newventure success or failure. Successful entrepreneurs adapt theirentrepreneurial strategies to their social capital and entrepreneurialcapabilities. (TNM)
Although the role of market knowledge competence in enhancing new product advantage is assumed widely in the literature, empirical studies are lacking because of an absence of the concept definition. In this study, the authors conceptualize market knowledge competence as the processes that generate and integrate market knowledge. The authors test the conceptual model using data collected from the software industry. The findings show that each of the three processes of market knowledge competence exerts a positive influence on new product advantage. The results also reveal a positive association between new product advantage and product market performance. The findings regarding the antecedents indicate that the perceived importance of market knowledge by top management has the largest impact on the processes of market knowledge competence.
This paper argues that network analyses of interorganizational relations should begin by examining the way in which relations are organized at the local level. It posits that systematic departures from random models for dyad and triad censuses should be found before interpreting structural patterns isolated by analytic techniques concerned with overall network structure. Three principles of organizational bonding (resource inequality, reciprocity, and redundancy) are identified, and the implications of these for dyadic and triadic microstructures are detailed. Particular attention is given to differentiating between microstructural patterns to be anticipated when a system consists of autonomous actors approximately equal in power and resources and those expected when a system is highly centralized.
New products provide increased sales, profits, and competitive strength for most organizations. However, nearly 50% of the new products that are introduced each year fail. Organizations thus find themselves in a double bind. On the one hand they must innovate consistently to remain competitive, but on the other hand innovation is risky and expensive. Many organizations are forming business alliances to quicken the pace of and reduce risks associated with innovation. Yet by some estimates, 70% of these alliances fail. Many of the prescriptions for successful alliance management clash with recommendations for effective innovation management. The authors develop testable hypotheses by integrating the new products and alliance literature. A construct - cooperative competency - derived from related concepts of mutual adjustment, absorptive capacity, and relational capability is posited as the key factor affecting new product development success, regardless of whether it is an intra-or interfirm endeavor. The authors test the model with data from a sample survey in the semiconductor manufacturing context and replicate it in the health care sector. The antecedents of cooperative competency - formalized and clannish administration, mutual dependence, and institutional support - are revealed empirically and substantiated. The authors identify the importance and means of developing interfirm cooperation.
Assuming heterogeneity among relationally-embedded ties, this study focuses on their classification. Network ties embedded within social relationships influence economic actions and represent a strategic form of organizing for emerging entrepreneurial firms. Research questions include the following: (I) What are the components of the social relationships of relationally-embedded ties? (2) How can relationally-embedded network ties be classified to identify different types of embeddedness based on variations in the social relationships? (3) What strategic implications can be drawn from a multidimensional view of relational embeddedness? This study uses case study methods to examine external network ties of eight emerging firms in the computer industry A classification typology of seven types of relational embeddedness emerges based upon combinations of three overarching social components-personal relationship, dyadic economic interaction, and social capital. The typology suggests multidimensionality of both embeddedness type and intensity. The discussion addresses strategic outcomes of heterogeneity within relational embeddedness
Entrepreneurial learning has emerged as an important yet insufficiently understood area of enquiry. This paper develops new understanding in this area from a social constructionist perspective by using narratives elicited from technology-based entrepreneurs to explore their learning experiences and behaviours. The unit of analysis is the emergent entrepreneur in the technology-based enterprise. The paper develops a framework for analysing entrepreneurial learning through in-depth analysis of entrepreneurial experiences by using discourse analysis based on a social learning perspective. This conceptual framework includes three major themes of personal and social emergence, contextual learning and the negotiated enterprise, and 11 related sub-themes. These demonstrate connections between the emergence of entrepreneurial identity, learning as a social and contextual process, opportunity recognition, and venture formation as a negotiated activity.
We examine the key compensation issues pertaining to the top management team that occur during the early stages of growth in new ventures, specifically those anticipating rapid growth such as in technology-intensive markets. Similar to other new ventures, high-growth technology ventures are small in size but they have a goal of rapid growth giving rise to a need for resources and managerial talent to sustain the growth. New ventures are likely to compete in the market with larger organizations for top management team members. As a result, new ventures in rapid growth technology markets experience some unique compensation challenges. Critical for these firms is the issue of distributing equity among members of the founding team and structuring compensation to attract and retain non-founder executives. Drawing from the human resource management and entrepreneurship literatures, this paper develops a set of propositions predicting top management team compensation strategies for rapidly growing new ventures. Directions for future research are also discussed.
Selling alliances that are formed to cooperatively develop and maintain customer relationships are among the new organizational forms that marketing managers utilize for competitive advantage. To be successful, these alliances require sales representatives from allied organizations to work effectively as selling partners. The authors develop a trust-based model of effective selling partner relationships and test it in the context of the computer industry. Par- tial Least Squares analysis of 103 dyadic relationships found that organizational differences were modest predic- tors of three dimensions of mutual perceived trustworthiness, which in turn differentially affected three trusting behaviors. Trusting behaviors were found to have a somewhat greater effect on perceived task performance than on mutual satisfaction, whereas dimensions of trustworthiness had both direct and indirect effects on satisfaction. The authors discuss the managerial and theoretical implications of these results.
Purpose
The paper aims to develop the survey utilized in this research as a data collection tool for the study of organizational responsiveness.
Design/methodology/approach
Drawing from the operations and strategic management literature, measurement scales were developed in order to empirically test five proposed enablers of organizational responsiveness: environmental scanning, strategic planning, flexible manufacturing infrastructures, supply chain governance mechanisms, and multi‐skilled workers.
Findings
The survey produced a total of 66 responses from 59 companies in three industries: automotive suppliers, instrumentation equipment, and semiconductor components. Three of the five enablers were found to be bi‐dimensional, which produced a survey instrument with eight separate measurement scales. Coefficient alpha was observed to be within the acceptable range for all construct scales and factor analysis confirmed unidimensionality for each construct.
Research limitations/implications
The survey instrument presented in this paper provides a better understanding of the processes that enable organizational responsiveness. This measurement scale will serve as a tool that will allow future researchers to more accurately operationalize the enablers of organizational responsiveness.
Practical implications
The ability of firms to quickly respond to changes in their external environment is a primary determinant of firm performance. This research provides important practical implications for firms wishing to maximize their levels of agility and flexibility in responding to changing environmental conditions.
Originality/value
Few measurement scales currently exist that can be utilized to measure and predict rates of organizational responsiveness. The survey instrument developed as part of this research provides important insights into various organizational factors that enable organizational responsiveness.
This study explores the performance implications of internal resources and external networks for entrepreneurial firms. A relationship of trust among network members is essential because of the high risk during the initial start-up stage. However, once high-tech firms initiate mass production and enter the growth stage, whether trust influences competitiveness more than resources becomes uncertain. This study examines Taiwanese firms to elucidate the main influences on firm competitiveness. In conclusion, the result indicates the competitiveness of high-tech firms during the growth stage is determined by firm resources and the willingness of support firms to cooperate—where willingness is determined by the trust of the support firms in the high-tech firm but is unrelated to firm resources.
The resource-based view is presented here as the theoretical framework for empirical research on the determinants of technological innovativeness in small firms. These determinants include the characteristics of the owner/manager (O/M) and the firm and some technological assets (resources and capabilities). Evidence based on case studies is used for the evaluation of their effect on innovativeness and their interaction. The study highlights the key role of the O/M and the importance of some of his/her characteristics. It also shows the impact of certain resources and capabilities. The O/M emerges as the orchestrator of resource accumulation and capability development in the innovative firms.
A growing body of empirical literature supports key assertions of the resource-based view. However, most of this work examines the impact of firm-specific resources on the overall performance of a firm. In this paper it is argued that, in some circumstances, adopting the effectiveness of business processes as a dependent variable may be more appropriate than adopting overall firm performance as a dependent variable. This idea is tested by examining the determinants of the effectiveness of the customer service business process in a sample of North American insurance companies. Results are consistent with resource-based expectations, and they show that distinctive advantages observable at the process level are not necessarily reflected in firm level performance. The implications of these findings for research and practice are discussed along with a discussion of the relationship between resources and capabilities, on the one hand, and business processes, activities, and routines, on the other. Copyright © 2003 John Wiley & Sons, Ltd.
This study examines why firms choose different governance structures across their alliances. We focus on the coordination costs in alliances that arise from interdependence of tasks across organizational boundaries and the related complexity of ongoing activities to be completed jointly or individually. We use a typology of alliance governance structures that differentiates structures by the magnitude of hierarchical controls to test hypotheses predicting alternative contractual choices. We use empirical data on alliance announcements in three worldwide industries over a 20-year period to assess which factors explain the choice of alliance types. The findings suggest that the magnitude of hierarchical controls in contractual relationships such as alliances is influenced by the anticipated coordination costs and by expected appropriation concerns.(. )
Using data collected from multiple respondents in all the business units of a large multinational electronics company, we examined the relationships both among the structural, relational, and cognitive dimensions of social capital and between those dimensions and the patterns of resource exchange and product innovation within the company. Social interaction, a manifestation of the structural dimension of social capital, and trust, a manifestation of its relational dimension, were significantly related to the extent of interunit resource exchange, which in turn had a significant effect on product innovation.
This paper introduces a social network perspective to the study of strategic alliances. It extends prior research, which has primarily considered alliances as dyadic exchanges and paid less attention to the fact that key precursors, processes, and outcomes associated with alliances can be defined and shaped in important ways by the social networks within which most firms are embedded. It identifies five key issues for the study of alliances: (1) the formation of alliances, (2) the choice of governance structure, (3) the dynamic evolution of alliances, (4) the performance of alliances, and (5) the performance consequences for firms entering alliances. For each of these issues, this paper outlines some of the current research and debates at the firm and dyad level and then discusses some of the new and important insights that result from introducing a network perspective. It highlights current network research on alliances and suggests an agenda for future research.© 1998 John Wiley & Sons, Ltd.
Classic and contemporary methods for analyzing construct validity are compared and contrasted through reanalyses of data from the organizational research literature to establish a basis for assessing the validity of measures used in organizational research. Campbell and Fiske's (1959) criteria are found to be lacking, particularly in their assumptions, diagnostic information, and power. Confirmatory factor analysis (CFA) is shown to overcome most limitations inherent in Campbell and Fiske's procedures. Nevertheless, two potential shortcomings are identified with the CFA method: the confounding of random error with measure-specific variance and the inability to test for interactions between traits and methods. Three alternative methods are presented for addressing the former issue, and the direct product model is described as a solution to the latter. The techniques considered herein go farther than currently used procedures for enhancing our ability to ascertain the validity of variables commonly studied in organizational research.
The authors examine two aspects of brand loyalty, purchase loyalty and attitudinal loyalty, as linking variables in the chain of effects from brand trust and brand affect to brand performance (market share and relative price). The model includes product-level, category-related controls (hedonic value and utilitarian value) and brand-level controls (brand differentiation and share of voice). The authors compile an aggregate data set for 107 brands from three separate surveys of consumers and brand managers. The results indicate that when the product- and brand-level variables are controlled for, brand trust and brand affect combine to determine purchase loyalty and attitudinal loyalty. Purchase loyalty, in turn, leads to greater market share, and attitudinal loyalty leads to a higher relative price for the brand. The authors discuss the managerial implications of these results.
consider the following issues: (a) the usefulness of the χ[superscript]2 statistic based on various estimation methods for model evaluation and selection; (b) the conceptual elaboration of and selection criteria for fit indexes; and (c) identifying some crucial factors that will affect the magnitude of χ[superscript]2 statistics and fit indexes / review previous research findings as well as report results of some new, unpublished research (PsycINFO Database Record (c) 2012 APA, all rights reserved)
This paper, unlike previous studies, focuses on the decomposition of impacts of core competencies on firm performance and the moderating effects of environmental turbulence on the basis of developing structural equation models using the partial least square (PLS) method. By taking a disaggregated approach, the decomposed effects of core competencies on firm performance are examined and the relative influences of all three major constituents of core competencies, marketing competencies, technological competencies and integrative competencies, are studied. Furthermore, this approach helps to avoid the so-called “pitfall” of being vague, tautological, endlessly recursive, and non-operational, for which some studies based on a resource-based view have been criticized. All three constituents are found to have significant influences on firm performance. And these relationships are moderated significantly by environmental turbulence such as market turbulence and technological turbulence, except that market turbulence is found to have no significant moderating effect on the relationship between integrative competencies and firm performance.
Analyzes the acquisition of resources through social transactions by independent entrepreneurs and corporate entrepreneurs, with a focus primarily on the corporate entrepreneurs. These social transactions include previous working relationships, voluntary connections, and community ties for independent entrepreneurs. Corporate entrepreneurs steal personnel time, appropriate materials, and conceal development activities. The importance of these social transactions in securing key resources for little to no cost is demonstrated through two examples: a Cuban American in the United States and a Swedish venture manager in a European mini-conglomerate. Two types of venture managers are discussed – the administrative venture manager and the social transactions-oriented manager. Cooptation is identified as the mechanism by which resources can be obtained. Two types of cooptation, legitimacy and underutilized goods, are presented. It is proposed that the social transactions-oriented managers are more likely to co-opt legitimacy (primiarly through association or endorsement) than are the administrative venture managers. Begging, borrowing, scavenging, and amplifying are the four strategies used for taking advantage of underutilized activities. This cooptation process involves the exploitation of social assets. These social assets are built by sharing information, solving and receiving help with problems, giving and receiving favors, and creating opportunities for people to demonstrate their skills and competence. Reasons why it is difficult for corporate entrepreneurs to take advantage of network resources are provided. The propositions presented in this analysis can provide the basis for future research. (SRD)
We develop a model of relational governance as a specific form of interorganizational strategy that is distinct from the traditional modes of markets and hierarchies. We conceptualize this form of strategy in terms of structural and processual dimensions and derive a model of its determinants through arguments drawn from transaction cost economics and the sociological exchange literature. Hierarchical regression modeling is employed to test the theoretical model on data collected from a sample of 329 independent insurance agencies. We include the relational variable of trust and demonstrate that the combined model explains relational governance better than a model with the traditional determinants of governance form alone. Further, we observe that governance structure and process are related and discuss implications of the dynamic link between them. Directions for extensions are developed for strategic management research and practice.
The paper explores the usefulness of analysing firms from the resource side rather than from the product side. In analogy to entry barriers and growth-share matrices, the concepts of resource position barrier and resource-product matrices are suggested. These tools are then used to highlight the new strategic options which naturally emerge from the resource perspective.
A taxonomy of managerial goals in mergers and acquisitions is developed through a cluster analysis of data from interviews with merger and acquisition practitioners. These clusters of objectives overlap with some objectives cited for mergers and acquisitions in the academic literature, but the correspondence is not complete. Further analysis shows that different types of mergers and acquisitions are characterized by different managerial objectives. The implications of this research for the development of a contingency model of the relationship between managerial objectives and mergers and acquisitions are discussed.
This paper critically examines the contribution of aspects of the resource-based view of the firm to global competition in particular, and to strategic management in general. Three concepts—core competence, organizational capability, and administrative heritage—are defined and compared with the current mainstream economic tradition of strategy. The value of these concepts in analyzing and explaining competitive strategy is determined through a detailed field-based case study of three firms in the worldwide bearings industry. It is found that the resource-based view of the firm complements economic analysis, and that both are essential to a complete understanding of global strategy.
This study examined the influence of internal capabilities and external networks on firm performance by using data from 137 Korean technological start-up companies. Internal capabilities were operationalized by entrepreneurial orientation, technological capabilities, and financial resources invested during the development period. External networks were captured by partnership- and sponsorship-based linkages. Partnership-based linkages were measured by strategic alliances with other enterprises and venture capitalists, collaboration with universities or research institutes, and participation in venture associations. Sponsorship-based linkages consisted of financial and nonfinancial support from commercial banks and the Korean government. Sales growth indicated the start-up's performance. Regression results showed that the three indicators of internal capabilities are important predictors of a start-up's performance. Among external networks, only the linkages to venture capital companies predicted the start-up's performance. Several interaction terms between internal capabilities and partnership-based linkages have a statistically significant influence on performance. Sponsorship-based linkages do not have individual effects on performance but linkage with financial institutions has a multiplicative effect with technological capabilities and financial resources invested on a start-up's performance. Implications and directions for future research were discussed. Copyright © 2001 John Wiley & Sons, Ltd.
We examine the determinants of trust in 453 supplier–automaker relationships in the US, Japan, and Korea. We define trust and derive a model of its determinants drawing upon (1) an embeddedness (relationship-based) perspective, (2) a process-based perspective, and (3) an economic (hostage-based) perspective. Our findings indicate strong support for the process-based perspective in all countries; embeddedness was only important in Japan, and the economic hostage-based variable (stock ownership) was not important in any country.
There are not many books that are genuine classics, and only a handful in business and management whose insights and ideas last for 50 years and more. This book is one of the very few 'must reads' for anybody seriously interested in the role of management within the firm. Originally published in 1959, The Theory of the Growth of the Firm has illuminated and inspired thinking in strategy, entrepreneurship, knowledge creation, and innovation. Edith Penrose's tightly-argued classic laid the foundations for the resource based view of the firm, now the dominant framework in business strategy. She analyses managerial activities and decisions, organizational routines, and also the factors that inevitably limit a firm's growth prospects. For this new anniversary edition, Christos Pitelis has written a new introduction which both tells the story of Penrose's extraordinary life, and provides a balanced assessment of her key ideas and their continuing relevance and freshness.
Analysis of Ordinal Categorical Data Alan Agresti Statistical Science Now has its first coordinated manual of methods for analyzing ordered categorical data. This book discusses specialized models that, unlike standard methods underlying nominal categorical data, efficiently use the information on ordering. It begins with an introduction to basic descriptive and inferential methods for categorical data, and then gives thorough coverage of the most current developments, such as loglinear and logit models for ordinal data. Special emphasis is placed on interpretation and application of methods and contains an integrated comparison of the available strategies for analyzing ordinal data. This is a case study work with illuminating examples taken from across the wide spectrum of ordinal categorical applications. 1984 (0 471-89055-3) 287 pp. Regression Diagnostics Identifying Influential Data and Sources of Collinearity David A. Belsley, Edwin Kuh and Roy E. Welsch This book provides the practicing statistician and econometrician with new tools for assessing the quality and reliability of regression estimates. Diagnostic techniques are developed that aid in the systematic location of data points that are either unusual or inordinately influential; measure the presence and intensity of collinear relations among the regression data and help to identify the variables involved in each; and pinpoint the estimated coefficients that are potentially most adversely affected. The primary emphasis of these contributions is on diagnostics, but suggestions for remedial action are given and illustrated. 1980 (0 471-05856-4) 292 pp. Applied Regression Analysis Second Edition Norman Draper and Harry Smith Featuring a significant expansion of material reflecting recent advances, here is a complete and up-to-date introduction to the fundamentals of regression analysis, focusing on understanding the latest concepts and applications of these methods. The authors thoroughly explore the fitting and checking of both linear and nonlinear regression models, using small or large data sets and pocket or high-speed computing equipment. Features added to this Second Edition include the practical implications of linear regression; the Durbin-Watson test for serial correlation; families of transformations; inverse, ridge, latent root and robust regression; and nonlinear growth models. Includes many new exercises and worked examples.